LegalZoom.com’s (LZ) Neutral Rating Reaffirmed at JPMorgan Chase & Co.

LegalZoom.com (NASDAQ:LZ)‘s stock had its “neutral” rating reissued by equities research analysts at JPMorgan Chase & Co. in a research note issued to investors on Thursday,Benzinga reports. They presently have a $7.00 price target on the stock, down from their prior price target of $8.00. JPMorgan Chase & Co.‘s target price suggests a potential downside of 13.58% from the stock’s current price.

Other equities analysts have also issued reports about the company. Citigroup cut their target price on LegalZoom.com from $8.50 to $7.50 and set a “neutral” rating on the stock in a research report on Friday, May 22nd. Wall Street Zen upgraded shares of LegalZoom.com from a “hold” rating to a “buy” rating in a research note on Tuesday, July 28th. Weiss Ratings restated a “sell (d+)” rating on shares of LegalZoom.com in a research note on Thursday, July 2nd. Finally, UBS Group cut their price target on shares of LegalZoom.com from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, LegalZoom.com presently has a consensus rating of “Reduce” and an average price target of $8.08.

LegalZoom.com Price Performance

Shares of LegalZoom.com stock opened at $8.10 on Thursday. LegalZoom.com has a 1-year low of $5.22 and a 1-year high of $12.40. The company has a market capitalization of $1.39 billion, a PE ratio of 135.02, a P/E/G ratio of 1.40 and a beta of 1.28. The business has a 50-day moving average of $6.76 and a 200-day moving average of $6.75.

LegalZoom.com (NASDAQ:LZ) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.15 by $0.01. LegalZoom.com had a return on equity of 11.53% and a net margin of 1.46%.The business had revenue of $205.29 million for the quarter, compared to analysts’ expectations of $205.83 million. During the same quarter in the previous year, the firm posted $0.15 earnings per share. The company’s revenue was up 6.6% compared to the same quarter last year. On average, equities analysts expect that LegalZoom.com will post 0.34 earnings per share for the current fiscal year.

Insider Activity at LegalZoom.com

In other news, insider Nicole Miller sold 19,199 shares of LegalZoom.com stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $6.58, for a total value of $126,329.42. Following the completion of the transaction, the insider owned 1,119,222 shares in the company, valued at approximately $7,364,480.76. This trade represents a 1.69% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Noel Bertram Watson sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $6.45, for a total value of $96,750.00. Following the completion of the sale, the chief financial officer owned 2,041,847 shares of the company’s stock, valued at $13,169,913.15. This trade represents a 0.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 7.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On LegalZoom.com

Hedge funds have recently added to or reduced their stakes in the business. Osaic Holdings Inc. lifted its position in shares of LegalZoom.com by 477.3% in the 2nd quarter. Osaic Holdings Inc. now owns 4,555 shares of the company’s stock worth $41,000 after buying an additional 3,766 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of LegalZoom.com by 976.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,564 shares of the company’s stock valued at $41,000 after buying an additional 4,140 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in LegalZoom.com by 11,415.2% during the first quarter. PNC Financial Services Group Inc. now owns 7,600 shares of the company’s stock worth $43,000 after acquiring an additional 7,534 shares during the period. Parallel Advisors LLC lifted its holdings in LegalZoom.com by 8,589.8% in the third quarter. Parallel Advisors LLC now owns 5,127 shares of the company’s stock worth $53,000 after acquiring an additional 5,068 shares during the last quarter. Finally, Cetera Investment Advisers acquired a new position in LegalZoom.com in the first quarter valued at approximately $58,000. Institutional investors and hedge funds own 81.99% of the company’s stock.

Key LegalZoom.com News

Here are the key news stories impacting LegalZoom.com this week:

• Positive Sentiment: LegalZoom reported second-quarter adjusted earnings of $0.16 per share, above the $0.15 consensus estimate. Revenue rose 6.6% year over year to $205.3 million, while subscription revenue increased 11% to $133.4 million, marking the fifth consecutive quarter of double-digit subscription growth. LegalZoom Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash generation improved: adjusted EBITDA was $45.9 million, ahead of the high end of guidance, with a 22% margin. LegalZoom generated $33.7 million in free cash flow, ended the quarter debt-free with $167.2 million in cash, and repurchased $45.5 million of stock. LegalZoom Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Management said it is diversifying customer-acquisition channels and expanding human-in-the-loop services as customers increasingly discover products through AI-powered search rather than traditional Google search. The company also highlighted its LegalZoom services integration with Microsoft 365 Copilot as a potential distribution opportunity. LegalZoom Q2 2026 Earnings Call Transcript
• Negative Sentiment: LegalZoom lowered its full-year 2026 revenue forecast to $795 million-$805 million, below the roughly $822 million analyst consensus. The company also issued third-quarter revenue guidance of $192 million-$196 million versus expectations of approximately $204.4 million. LegalZoom 2026 Revenue Outlook
• Negative Sentiment: The weaker outlook overshadowed the quarterly EPS beat and raised concerns about near-term customer acquisition and growth. Those concerns are particularly important given LZ’s elevated valuation, including a reported P/E ratio above 135.

About LegalZoom.com

LegalZoom.com, Inc (NASDAQ: LZ) operates as a leading online legal technology company that provides a broad range of legal and business services to individuals, families and small businesses. Through its digital platform, the company offers customized legal documents and filing services, including business formation (LLCs, corporations and nonprofits), estate planning (wills and trusts), intellectual property protection (trademarks and copyrights), and ongoing compliance support. LegalZoom also connects customers with independent attorneys for consultations on matters such as family law, immigration and real estate.

Founded in 2001 by entrepreneurs Brian Lee, Brian P.